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2011©Cengage Learning. All Rights Reserved.
Voluntary Transfers of Property
2011©Cengage Learning. All Rights Reserved.
Nature of Deeds
An instrument used to transfer title to real estate.
2011©Cengage Learning. All Rights Reserved.
TYPES OF DEEDS
Grant Deed Quitclaim Deed Warranty Deed
2011©Cengage Learning. All Rights Reserved.
Warranties
Grant deeds the grantor warrants not to have previously conveyed the same interest to someone else.
And not to have previously encumbered the property.
2011©Cengage Learning. All Rights Reserved.
Warranties
A quitclaim deed contains no warranties whatsoever.
Commonly used to clear title when the grantor has no real interest to convey.
2011©Cengage Learning. All Rights Reserved.
Warranties Warranty deeds guarantee that there
are no encumbrances against the property & that no one will disturb the peaceful, quiet possession of the grantee.
The grantor agrees to defend the warranties in a lawsuit or otherwise.
Rarely used in California.
2011©Cengage Learning. All Rights Reserved.
Warning to Brokers
Many deposit receipts state that title is to be free from all liens & encumbrances except those listed.
The broker must be extremely cautious to check title & to list documents of record & taxes due but not yet of record.
2011©Cengage Learning. All Rights Reserved.
Basics of Valid Deed
1. Written document
2. Signature of competent grantor
3. Grantee capable of holding title
4. Description of property
5. Operative words of conveyance
6. Delivery
7. Acceptance
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Other Elements
Consideration Not Required Recording Not Required Acknowledgment
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Requirements
Competent Grantor Agent Signing Using Powers of Attorney
Competent Grantee Adequate Property Description
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More Requirements
Words of Conveyance Legal Delivery
Example of delivery Presumptions on Delivery
Acceptance
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Types of Wills
Witnessed Will Formal Witnessed
Statutory Will Holographic Will
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Intestacy
Testate (with will) Intestate (without will) Laws of intestate succession
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Community Property
All community property passes to the surviving spouse, regardless of any children or other heirs.
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Separate Property
1. One-half to surviving spouse; one-half to child
2. One-third to surviving spouse; two-thirds equally to children
3. All to children if there is no surviving spouse
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Separate Property
4. One-half to surviving spouse; one-half to parent, if there are no children
5. All to collaterals (aunts, uncles, cousins), only if there are no parents, brothers, sisters, nephews, nieces, children, grandchildren, or surviving spouse
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Will Terms
Testate Intestate Testator Executor
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More Will Terms
Administrator Devise Bequest Legacy
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Will Terminology
Ambulatory Codicil
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Escheat
When there are no heirs, the property passes to the state.
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LAND SALES CONTRACTS
Seller’s Right & Duties Buyer’s Rights & Duties Reasons for Demise Trustee’s Sale
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Advantages & Disadvantages to Seller
Buyer’s interest can be expeditiously and inexpensively terminated.
Contract may provide a means of selling property without paying an assumption fee or facing an acceleration of an existing loan.
The seller must clear title.
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Advantages & Disadvantages to Buyer
Possibility of recovery of part of the payments over the amount of the seller’s damages.
Possibility of purchasing the property with an existing loan without changing interest rate.
Judgment lien will not attach to the buyer’s equitable title.
Difficulty in obtaining financing from lenders.
2011©Cengage Learning. All Rights Reserved.